One of the pressures in the crypto market is regulation. Regulators of many countries are consistent in supporting the regulation and monitoring of crypto assets. These regulators are always creating rules to govern the industry and protect investors’ money.
California and New York are at the forefront of global crypto regulations. For example, crypto companies in New York operate under a law that requires them to obtain a “BitLicense” before offering virtual asset services. Although the current mayor, Eric Adams, did not support the law, the law was implemented in the state.
But besides these top players, other states like Arizona and Wyoming are enacting different crypto regulations.
California Bill for Crypto Businesses and Exchanges
Another bill, similar to the BitLicense Act, was passed in California. The “Digital Financial Assets Bill” would require exchanges and businesses in the industry to obtain licenses from California regulators.
The bill had earlier passed the Assembly on a 71-0 vote. It also passed the Senate and now waits for Governor Gavin Newsom to sign it by September 30. Unfortunately, but surprisingly, Newsom rejected the bill.
The decision surprised the regulators, but the crypto community was very happy about it. Newsom wrote to the California State Assembly expressing his opposition to the bill. According to him, the crypto control account is not suitable for the state.
The governor believes that the crypto industry is gaining more popularity by the day. Therefore, there should be a transparent law that protects the citizens of the region. To achieve this, Newsom mentioned that the administration has researched the crypto industry to find protective approaches for investors.
Therefore, it would be a mistake to sign an invoice without knowing his research. He also pointed out that the federal mid-term elections are in progress and should be completed first.
According to Newsom, the bill would take tens of millions from the state’s general fund. This amount is required in the cost-benefit analysis of the bill and is considered in the state’s budgeting process.
Therefore, it is suggested that the regulators wait now and develop a flexible approach to strike a balance between innovation and protection.
The digital asset community rejoices.
Every regulation in the crypto industry affects operations in one way or another. That’s why the community appreciates Newsom’s actions to protect the bill.
The Blockchain Association’s Jake Chervinsky praised the governor’s guts and strength in standing up to the state legislature. Also, Miles Jennings from a16z praised Newsom for his support at Web3 in California.
Featured image from Pixabay, chart from TradingView.com